American Water Works (AWK)vsShopify Inc (SHOP)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
SHOP
Shopify Inc
$127.67
+5.40%
TECHNOLOGY · Cap: $157.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 122% more annual revenue ($11.56B vs $5.21B). AWK leads profitability with a 21.2% profit margin vs 10.6%. AWK appears more attractively valued with a PEG of 2.30. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
SHOP
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.7%
Fair Value
$111.75
Current Price
$125.68
$13.93 premium
Margin of Safety
+20.9%
Fair Value
$147.83
Current Price
$127.67
$20.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.2%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Revenue surging 30.6% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 20.3%
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 4.8%
Negative free cash flow — burning cash
Expensive relative to growth rate
Trading at 12.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : AWK
The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.2% and operating margin at 33.2%.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 128.9x leaves little room for execution misses.
Key Dynamics to Monitor
AWK profiles as a mature stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.82 — expect wider price swings.
SHOP is growing revenue faster at 30.6% — sustainability is the question.
SHOP generates stronger free cash flow (715M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 50/100), backed by strong 21.2% margins. SHOP offers better value entry with a 20.9% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
American Water Works
UTILITIES · UTILITIES - REGULATED WATER · USA
American Water is an American public utility company operating in the United States and Canada.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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